A Closer Look at CEO Compensation Levels of Public Companies in the United States




Allen, Jeremiah J.

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I analyze the relationships between CEO compensation and company size and performance, as well as the relationships between CEO compensation and executive attributes, using data on 150 public U.S. companies. This paper looks beyond firm size to various other measures of company performance to see if it is possible to explain more of the variance in CEO compensation. Measures include revenue, revenue growth, and market capitalization. Profit margin is used to measure profitability, and return on equity is used to measure managerial effectiveness. I find that firm size exhibits a strong correlation to CEO compensation; however, the low amount of variance in CEO compensation explained by company performance variables other than firm size suggests that there is not a strong relationship between CEO compensation and company performance.



chief executive officers, executives, salaries


Allen, J. J. (2009). A closer look at CEO compensation levels of public companies in the United States (Unpublished thesis). Texas State University-San Marcos, San Marcos, Texas.


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